Anglo Irish Bankhttp://www.businessinsider.com/category/anglo-irish-bank
en-usFri, 09 Dec 2016 22:40:00 -0500Fri, 09 Dec 2016 22:40:00 -0500The latest news on Anglo Irish Bank from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/former-bank-ceo-arrested-in-irish-probe-2011-12Former Bank CEO Arrested In Irish Probehttp://www.businessinsider.com/former-bank-ceo-arrested-in-irish-probe-2011-12
Fri, 09 Dec 2011 08:08:43 -0500Gavan Reilly
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4d943e1e4bd7c85660360000/anglo-irish-bank.jpg" border="0" alt="anglo irish bank" /></p><p>GARDA&Iacute; IN WICKLOW have this morning arrested the former chief executive and chairman of <a class="hidden_link" href="http://www.businessinsider.com/blackboard/anglo-irish-bank">Anglo Irish Bank</a>, Se&aacute;n FitzPatrick.</p>
<p>FitzPatrick, 63, was arrested at around 8am this morning, is being detained at Bray Garda Station under section 4 of the Criminal Justice Act 1984.</p>
<p>The arrest is part of the ongoing investigations being carried out by the Garda Bureau of Fraud Investigation, and the Office of the Director of Corporate Enforcement, into alleged irregularities at Irish financial institutions.</p>
<p>Another man, aged in his 40s, was&nbsp;arrested as part of similar investigations yesterday, and remains in custody at Irishtown Garda Station.</p>
<p>It is understood that that arrest is part of a different line of inquiry, however.</p>
<p><em><a href="http://www.thejournal.ie/former-anglo-chief-sean-fitzpatrick-arrested-in-garda-banking-probe-300509-Dec2011/">This story</a> originally appeared on <a href="http://www.thejournal.ie/">TheJournal.ie</a></em></p><p><a href="http://www.businessinsider.com/former-bank-ceo-arrested-in-irish-probe-2011-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/the-former-finance-director-of-anglo-irish-bank-has-been-arrested-again-2011-11The Former Finance Director Of Anglo Irish Bank Has Been Arrested Againhttp://www.businessinsider.com/the-former-finance-director-of-anglo-irish-bank-has-been-arrested-again-2011-11
Tue, 01 Nov 2011 12:46:00 -0400Aoife Barry
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4daeefcc4bd7c8bf6f3f0000-400-300/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" width="400" height="300" /></p><p>The former finance Director of Anglo Irish Bank, Willie McAteer, has been arrested by the Irish police force, garda&iacute;.</p>
<p>Garda&iacute; said that he was arrested as part of an ongoing investigation by garda&iacute; from the Garda Bureau of Fraud Investigation and the&nbsp;Office of the Director of Corporate Enforcement.</p>
<p>The investigation is into&nbsp;alleged financial irregularities at Anglo Irish Bank.</p>
<p>McAteer is currently being detained under the provisions of Section 4 of the Criminal Justice Act 1984 at Irishtown Garda Station.</p>
<p>This is the second time that McAteer has been arrested.</p>
<p>In August of this year, the Office of the Director of Corporate Enforcement submitted a third investigation file into the Anglo case to the DPP.</p>
<p>A statement from the office at the time said:</p>
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<p>"This investigation file was stated to relate to the suspected failure of Anglo to maintain a register of loan and related transactions which the Bank had with its directors and with persons connected with its directors.&nbsp; Section 44 of the Companies Act 1990 is the relevant statutory provision."</p>
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<p>This file relates to pre-2009 periods.</p>
<p>The ODCE also said that &ldquo;good progress continues to be made&rdquo; with its Anglo investigations, and that it will be sending further papers to the DPP in the coming months.</p>
<p><em>This <a href="http://www.thejournal.ie/former-anglo-irish-bank-finance-director-arrested-268603-Nov2011/" target="_blank">post</a> originally appeared at <a href="http://www.thejournal.ie/" target="_blank">The Journal</a>.</em></p><p><a href="http://www.businessinsider.com/the-former-finance-director-of-anglo-irish-bank-has-been-arrested-again-2011-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/why-ireland-is-the-miracle-of-europe-2011-9Why Ireland Is The Miracle Of Europehttp://www.businessinsider.com/why-ireland-is-the-miracle-of-europe-2011-9
Wed, 28 Sep 2011 15:10:02 -0400Simone Foxman
<p><img style="float:right;" src="http://static4.businessinsider.com/image/4e57c49949e2aea02c00001d-400-300/four-leaf-clover.jpg" border="0" alt="four leaf clover" width="400" height="300" /></p><p>Numerous EU officials have recently lauded Ireland's commitment to cutting spending and getting its economy back on track.</p>
<p>This time last year the problems facing Ireland were incredibly serious &mdash; a gravely distressed <a class="hidden_link" href="http://www.businessinsider.com/blackboard/anglo-irish-bank">Anglo Irish Bank</a> and rapidly inflating borrowing costs spelled disaster ahead. But with 1.6% GDP growth last quarter and expected growth of 2% next year, Ireland seems to be the only one of the bailed-out or threatened nation to be on its way back to economic health.</p>
<p>Regardless of reservations raised about the sustainability of this growth &mdash; particularly if the global economy continues to go down the tube &mdash; Ireland's recovery so far has been little short of extraordinary.</p><h3>Then the Irish government decided to split up the ailing Anglo Irish Bank.</h3>
<img src="http://static1.businessinsider.com/image/4daeefda49e2ae23296f0000-400-300/then-the-irish-government-decided-to-split-up-the-ailing-anglo-irish-bank.jpg" alt="" />
<p><p>A real estate bubble compromised the Anglo Irish Bank's assets, quickly turning it into <a href="http://www.businessinsider.com/anglo-irish-bank-2010-9#the-situation-at-anglo-irish-bank-10">the country's most distressed financial institution</a>.</p>
<p>The Anglo Irish Bank looked like it would cost the Irish government nearly $35 billion over 10-20 years&nbsp; before it <a href="http://www.businessinsider.com/breaking-anglo-irish-bank-to-be-split-in-two-2010-9" target="_blank">decided to split up the bank</a> into a funding bank and an asset recovery bank.</p></p>
<br/><br/><h3>But before the EU/IMF bailout, things were still looking grim for Ireland.</h3>
<img src="http://static3.businessinsider.com/image/4e6f87a769beddb126000028-400-300/but-before-the-euimf-bailout-things-were-still-looking-grim-for-ireland.jpg" alt="" />
<p><p>Despite measures to help the Anglo Irish Bank, the whole Irish banking sector continued to suffer. A credit crunch for Irish banks compounded and credit default swaps on Irish sovereign bonds were going through the roof. The country <a href="http://www.businessinsider.com/ireland-banks-bailout-2010-11" target="_blank">finally admitted its banks needed help</a> last November.</p>
<p>Ireland <a href="http://www.businessinsider.com/official-terms-of-the-irish-bailout-have-been-released-2010-12">received nearly $113 billion in aid</a> from the European Union and International Monetary Fund late last year in return for cuts to minimum wage, raising taxes, and spending caps. The money was used to recapitalize its fragile banking sector.</p></p>
<br/><br/><h3>Moody's downgraded Irish debt to nearly to junk.</h3>
<img src="http://static4.businessinsider.com/image/4e1b1d06cadcbb725f010000-400-300/moodys-downgraded-irish-debt-to-nearly-to-junk.jpg" alt="" />
<p><p><a href="http://www.foxbusiness.com/markets/2011/04/15/moodys-slashes-irelands-debt-rating/" target="_blank">Ratings downgrades</a> on Irish sovereign debt reflected the poor state of Irish affairs. Moody's predicted that rising public debt would continue to compound problems.</p></p>
<br/><br/><a href="http://www.businessinsider.com/why-ireland-is-the-miracle-of-europe-2011-9#but-a-austerity-measures-and-a-new-government-helped-drive-recovery-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/the-derelict-future-home-of-anglo-irish-bank-could-be-turned-into-a-vertical-park-2011-9The Derelict Future Home Of Defunct Anglo Irish Bank Could Be Turned Into A 'Vertical Park'http://www.businessinsider.com/the-derelict-future-home-of-anglo-irish-bank-could-be-turned-into-a-vertical-park-2011-9
Fri, 23 Sep 2011 13:18:00 -0400Michael Freeman
<p><img style="float:right;" src="http://static2.businessinsider.com/image/4e7cb244ecad04a27a000005/anglo-irish-bank-vertical-park-thumb.jpg" border="0" alt="Anglo Irish Bank Vertical Park Thumb" /></p><p>The derelict building that was slated for development as the headquarters of now-defunct Anglo Irish Bank could become a groundbreaking &lsquo;vertical park&rsquo; under one architect&rsquo;s proposal.</p>
<p>The plan would see what is currently a concrete shell on Dublin&rsquo;s North Wall Quay carved into a series of terraces, with public walkways cut from the floors of the building between large trees and other plants.</p>
<p>The &lsquo;<a href="http://www.facebook.com/#%21/pages/Trees-on-the-Quays/266333633398961">Trees On The Quays</a>&lsquo; project is being spearheaded by Paschal Mahoney of <a href="http://www.mahoneyarchitecture.com/">Mahoney Architecture</a>, who said it would transform a symbol of economic collapse into a public amenity. He told <em>TheJournal.ie</em>:</p>
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<p style="padding-left: 30px;">"We felt it would be the wrong outcome if that site was to become the negative backdrop of the collapse of the Irish economy. There could be something far more creative done with it; something that would serve a purpose. It would be a national asset."</p>
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<p>He said the &lsquo;vertical park&rsquo; concept was entirely workable, but would be a &ldquo;leading light&rdquo; among such developments. &ldquo;We&rsquo;re actually carving out the floor plates to leave a lattice of walkways, allowing the trees to grow between them and light, air and water to filter through,&rdquo; he said. &ldquo;People would take a lift to the top of the building, then meander down through the trees.&rdquo;</p>
<p>There is also a proposal for a cable car linking the development with the south quays. Mr Mahoney said the project would be entirely self-funding, not for profit, and would only require the donation of the site and a licence to develop it.</p>
<p>The building is currently controlled by Nama after being taken over from developer Liam Carroll. It was originally <a href="http://www.jvtierney.ie/commercial/project11.php">planned</a> as a landmark headquarters for the bank, but work stopped as far back as 2009.</p>
<p>Also included in the project are plans for a &ldquo;Meeting Room For Very Important Decisions&rdquo; on top of the building, which would be constructed entirely of glass as &ldquo;a highly public and transparent venue&rdquo; where future issues of national importance could be decided.</p>
<p><em>This <a href="http://www.thejournal.ie/in-pictures-derelict-anglo-hq-could-become-vertical-park-234481-Sep2011/#slide-slideshow8" target="_blank">post</a> originally appeared at <a href="http://www.thejournal.ie/" target="_blank">The Journal</a>.</em></p><img src="http://static4.businessinsider.com/image/4e7ca974ecad04886300000f-400-300/.jpg" alt="" />
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<br/><br/><a href="http://www.businessinsider.com/the-derelict-future-home-of-anglo-irish-bank-could-be-turned-into-a-vertical-park-2011-9#-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/now-ireland-wants-to-take-the-hatchet-to-senior-bank-bondholders-2011-6Now Ireland Wants To Take The Hatchet To Senior Bank Bondholdershttp://www.businessinsider.com/now-ireland-wants-to-take-the-hatchet-to-senior-bank-bondholders-2011-6
Wed, 15 Jun 2011 11:46:18 -0400Gregory White
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4d1249e9cadcbb4935080000/axe.jpg" border="0" alt="Axe" /></p><p>Irish finance minister Michael Noonan now wants to impose losses on senior bondholders of Anglo Irish Bank, <a href="http://www.rte.ie/news/2011/0615/anglo-business.html">according to RTE.ie</a>.</p>
<p>The IMF is backing this plan, <a href="http://www.rte.ie/news/2011/0615/anglo-business.html">according to the RTE report</a>.</p>
<p>From the report:</p>
<p style="padding-left: 30px;">Speaking in Washington DC, where he has been meeting US Treasury Secretary Timothy Geithner and officials from the IMF, Mr Noonan said around &euro;3.5 billion in senior unsecured, unguaranteed bonds issued by Anglo Irish Bank and Irish Nationwide Building Society should have losses imposed on them.</p>
<p>While the IMF may be in support, there's no word yet from the ECB, whose voice on the matter may be the deciding one. There has been some expectation from investors that the Irish government <a href="http://www.reuters.com/article/2011/06/02/irish-banks-senior-debt-idUSLDE75107820110602">would turn against</a> senior Anglo Irish bondholders at some point.</p><p><a href="http://www.businessinsider.com/now-ireland-wants-to-take-the-hatchet-to-senior-bank-bondholders-2011-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/anglo-irish-bank-photos-2011-4Check Out Pictures Of Defunct Anglo Irish Bank Getting Stripped Of Its Namehttp://www.businessinsider.com/anglo-irish-bank-photos-2011-4
Wed, 20 Apr 2011 10:43:44 -0400Susan Daly
<p>THREE LITTLE WORDS can pack a lot of power.</p>
<p>Three words in particular &ndash; Anglo Irish Bank &ndash; were in the spotlight today as they were removed from outside the toxic bank&rsquo;s St Stephen&rsquo;s Green HQ.</p>
<p>Onlookers, bemused tourists and a pack of photographers and TV cameras witnessed the removal of possibly the most-hated moniker in recent Irish history. Several vehicles honked their horns in approval in the post-lunchtime traffic round the Green &ndash; including the driver of a cash-in-transit van.</p>
<p>Will the removal of the name from the Anglo Irish facade right the wrongs of the Irish financial collapse? No.</p>
<p>Was it cathartic? Probably.</p>
<h3>GOING&hellip;</h3>
<p><img src="http://static5.businessinsider.com/image/4daeefcc4bd7c8bf6f3f0000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p>
<h3>&hellip;GOING&hellip;</h3>
<p><img src="http://static3.businessinsider.com/image/4daeefda49e2ae23296f0000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p>
<h3>&hellip;GOING&hellip;</h3>
<p><img src="http://static6.businessinsider.com/image/4daeefed49e2ae1f293f0000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p>
<h3>&hellip;GOING&hellip;</h3>
<p><img src="http://static3.businessinsider.com/image/4daeeffa4bd7c8bf6f420000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p>
<h3>&hellip;GOING&hellip;</h3>
<p><img src="http://static1.businessinsider.com/image/4daef008ccd1d5b45e730000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p>
<h3>&hellip;GONE</h3>
<p><img src="http://static4.businessinsider.com/image/4daef018ccd1d578620b0000/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank" /></p><p><a href="http://www.businessinsider.com/anglo-irish-bank-photos-2011-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/anglo-irish-bailout-us-investors-2010-10What Ireland's €30 Billion Bailout Of Anglo Irish Bank Means To U.S. Investorshttp://www.businessinsider.com/anglo-irish-bailout-us-investors-2010-10
Thu, 07 Oct 2010 12:00:00 -0400Gregory White
<script src="http://player.ooyala.com/player.js?width=560&amp;height=316&amp;embedCode=1oMDZyMTr7tjIhO3eFvb9jp6AECdR4AW"></script>
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<p>What should U.S. investors make of <a href="http://www.businessinsider.com/ireland-about-to-tack-on-5-billion-more-to-countrys-anglo-irish-bailout-bill-2010-9">Ireland's &euro;30 billion bailout</a> of Anglo Irish Bank? Otis Casey of Markit had this to say:</p>
<p>"In the sovereigns, the volatility in the markets &ndash; particularly in investment grade corporates for U.S., high-yield, etc. &ndash; has been on the recession. So that's good news for U.S. investors at least."<strong>&nbsp;</strong></p>
<p><strong>And Don't Miss...</strong><a href="../zong-ceo-well-start-paying-for-our-stuff-with-phones-in-3-5-years-2010-10"><strong> </strong></a><a href="http://www.businessinsider.com/ideas-are-a-dime-a-dozen-execution-is-all-that-matters-2010-10"><strong>&nbsp;</strong></a></p>
<p><a href="http://www.businessinsider.com/ideas-are-a-dime-a-dozen-execution-is-all-that-matters-2010-10"><strong>&ndash; Ideas Are A Dime A Dozen, Execution Is All That Matters</strong></a></p>
<p><a href="http://www.businessinsider.com/zong-ceo-well-start-paying-for-our-stuff-with-phones-in-3-5-years-2010-10"><strong>&ndash; Zong CEO: We'll Start Paying For Stuff With Our Phones In 3-5 Years</strong></a><strong><a href="../angel-collusion-scandal-mike-arrington-2010-9"><strong>&nbsp;</strong></a><a href="../mullets-mormonism-when-creating-viral-content-says-buzzfeed-ceo-2010-9"><strong>&nbsp;</strong></a></strong><a href="../mullets-mormonism-when-creating-viral-content-says-buzzfeed-ceo-2010-9"><strong>&nbsp;</strong><strong>&nbsp;</strong></a></p>
<p><a href="../mullets-mormonism-when-creating-viral-content-says-buzzfeed-ceo-2010-9"><strong>&ndash; Mullets And Mormonism Are The Secret To Viral Content, Says BuzzFeed CEO</strong></a><em> </em></p>
<p><em>Produced By: Kamelia Angelova &amp; William Wei</em></p>
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</div><p><a href="http://www.businessinsider.com/anglo-irish-bailout-us-investors-2010-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/piigs-ireland-2010-9Forget The PIIGS -- The Market's Obsession Is Irelandhttp://www.businessinsider.com/piigs-ireland-2010-9
Thu, 30 Sep 2010 08:55:35 -0400Gregory White
<p>CDS prices are showing serious worries about Ireland, but calming fears around every other one of the PIIGS.</p>
<p>Ireland has become the most volatile concern due to the expanding cost of the Anglo Irish Bank bailout. The cost could increase to <a href="http://www.irishtimes.com/newspaper/breaking/2010/0930/breaking4.html">&euro;34.3 billion</a> and go as high as <a href="http://www.businessinsider.com/anglo-irish-bailout-to-push-irish-deficit-to-32-of-gdp-2010-9">32% of GDP</a>.</p>
<p><a href="http://www.cmavision.com/">From CMA Datavision</a>:</p>
<p><img src="http://static4.businessinsider.com/image/4ca487da7f8b9a8239f70800/pigs-cds-930.jpg" border="0" alt="PIGS CDS 930" /></p>
<p>Greece, however, remains far off the charts, still priced higher than any other member of the PIIGS.</p>
<p><a href="http://www.cmavision.com/">From CMA Datavision</a>:</p>
<p><img src="http://static2.businessinsider.com/image/4ca488457f8b9ab948480000/greece-cds-930.jpg" border="0" alt="Greece CDS 930" /></p><p><a href="http://www.businessinsider.com/piigs-ireland-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/ireland-about-to-tack-on-5-billion-more-to-countrys-anglo-irish-bailout-bill-2010-9Ireland About To Tack On €5 Billion More To Country's Anglo Irish Bailout Billhttp://www.businessinsider.com/ireland-about-to-tack-on-5-billion-more-to-countrys-anglo-irish-bailout-bill-2010-9
Wed, 29 Sep 2010 09:16:00 -0400Gregory White
<p><img style="float:right;" src="http://static5.businessinsider.com/image/4be082bc7f8b9aaa03500200/euro-burning.jpg" border="0" alt="euro burning" /></p><p>Ireland is about to add an additional &euro;5 billion to its bill in the bailout of the country's Anglo Irish Bank, <a href="http://www.ft.com/cms/s/0/652d26c4-cb35-11df-95c0-00144feab49a.html">according to the Financial Times</a>.</p>
<p>That would bring the bailout cost to a staggering &euro;30 billion. Costs have not yet risen to the &euro;35 billion <a href="http://www.businessinsider.com/sp-puts-monster-price-tag-on-anglo-irish-bailout-spreads-widen-to-new-record-stocks-tank-2010-9">suggested by S&amp;P</a> earlier this week.</p>
<p>Markets continue to react to the news, with <a href="http://www.irishtimes.com/newspaper/breaking/2010/0929/breaking37.html">bond spreads widening yesterday</a> and <a href="http://online.wsj.com/article/BT-CO-20100928-709138.html">CDS prices spiking</a>.</p>
<p>Now protesters in Ireland are starting to take aim at the specific bailout of Anglo Irish Bank. One drove a cement mixer with the phrase "<a href="http://www.businessinsider.com/europe-rocked-by-austerity-protests-across-the-continent-2010-9">Anglo Toxic Bank</a>" into the Irish Parliament today.</p>
<p>Of particular concern of Anglo Irish Bank investors, the company's second tier debt has been <a href="http://www.zerohedge.com/article/anglo-irish-tier-2-debt-downgraded-sp-ccc-restructuring-concerns-bank-prepares-receive-bail-">downgraded to CCC</a> on concerns that it will be involved in a restructuring package.</p>
<h2><a href="http://www.businessinsider.com/anglo-irish-bank-2010-9#it-all-started-with-a-massive-property-bubble-1">Reminder: Here's how Ireland got into this bailout mess &gt;</a></h2><p><a href="http://www.businessinsider.com/ireland-about-to-tack-on-5-billion-more-to-countrys-anglo-irish-bailout-bill-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/ecb-stepping-in-to-buy-irish-bonds-to-support-the-country-2010-9It's Official: The ECB Is Propping Up Irish Bonds--But Yields Are Still Sky Highhttp://www.businessinsider.com/ecb-stepping-in-to-buy-irish-bonds-to-support-the-country-2010-9
Tue, 28 Sep 2010 11:26:00 -0400Gregory White
<p>Bloomberg Television is reporting that the European Central Bank is stepping in to buy Ireland's sovereign debt in an effort to provide support to the country (<a href="http://www.politics.ie/economy/139225-ecb-have-been-buying-irish-bonds-bloomberg.html">via David Cochrane</a>).</p>
<p>This morning the S&amp;P put a figure on the country's bailout of Anglo Irish Bank, <a href="http://www.businessinsider.com/sp-puts-monster-price-tag-on-anglo-irish-bailout-spreads-widen-to-new-record-stocks-tank-2010-9">at &euro;35 billion</a>.</p>
<p><a href="http://www.businessinsider.com/irish-yields-keep-blasting-higher-as-spread-over-german-10-year-hits-450-2010-9">Yields and CDS prices spiked</a> on the news.</p>
<p>Check out this video from Bloomberg Television where they report on the ECB purchases and Ireland's Foreign Minister Michael Martin defends his country's position.</p>
<p>Via <a href="http://www.politics.ie/economy/139225-ecb-have-been-buying-irish-bonds-bloomberg.html">David Cochrane on politics.ie</a>:</p>
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</p><p><a href="http://www.businessinsider.com/ecb-stepping-in-to-buy-irish-bonds-to-support-the-country-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/ireland-austerity-anglo-irish-bank-2010-9Forget Austerity, Only Stopping The Bailout Or A New Currency Can Save Irelandhttp://www.businessinsider.com/ireland-austerity-anglo-irish-bank-2010-9
Thu, 23 Sep 2010 16:34:55 -0400Gregory White
<p><img style="float:right;" src="http://static5.businessinsider.com/image/4bcedaa87f8b9a7234650400/ireland.gif" border="0" alt="ireland" /></p><p>Ireland just fell back into negative growth, with <a href="http://www.businessinsider.com/ireland-negative-gdp-2010-9">GDP for the second quarter hitting -1.2%</a>.</p>
<p>The worry right now is that <a href="http://www.guardian.co.uk/business/2010/sep/23/ireland-austerity-budgets-comment">austerity is preventing a proper recovery</a> in the country, by cutting state jobs and benefits that feed the broader economy's growth.</p>
<p>Ireland has the added weight of an <a href="http://www.businessinsider.com/irish-banking-bailout-2010-9">expensive bank bailout that is growing by the day</a>. The Anglo Irish Bank bailout now poses a threat to the stability of the country's debt.</p>
<p>But you can't just blame the costs of the bailout and austerity for this GDP drop. Ireland's membership in the eurozone is at the core of the problem.</p>
<p>If Ireland is going to continue to cut its public budget, it needs to be able to devalue its currency, to make its exports more competitive in Europe and the broader world. But it can't do that locked into the euro.</p>
<p>So, it must sit and wait for handouts from Berlin, via Brussels, that will allow it to engage in further government spending on things like infrastructure and education.</p>
<p>But how can Ireland rely on Berlin, when there is <a href="http://www.businessinsider.com/germany-may-want-to-punish-debt-offenders-but-no-one-else-in-europe-does-2010-9">so little sincerity</a> behind their already expensive support of eurozone fringe sovereigns?</p>
<p>Eventually, if Ireland wants to grow its economy in any sort of robust manner, it is going to increase government spending, ditch the bank bailout, or escape the eurozone.</p>
<p>Right now, it seems <a href="http://ftalphaville.ft.com/blog/2010/09/23/350731/irelands-subordinated-bond-attack/">most likely they'll ditch the bank bailout</a>, and that's why investors are nervous about their debt positions in Anglo Irish Bank.</p>
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<h2 style="border: medium none; overflow: hidden; color: #000000; background-color: transparent; text-align: left; text-decoration: none;"><a href="http://www.businessinsider.com/this-is-what-the-us-government-austerity-budget-could-look-like-2010-2#the-unemployed-get-burned-1">Here's what the Irish austerity budget would look like in the U.S. &gt;</a><span><br /><a href="../ireland-negative-gdp-2010-9#ixzz10O2oGjTz"></a></span></h2>
</div><p><a href="http://www.businessinsider.com/ireland-austerity-anglo-irish-bank-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/goldman-sachs-ireland-quinn-2010-9Goldman Sachs Involved In Anglo Irish Bank Bailout Shenanigans (GS)http://www.businessinsider.com/goldman-sachs-ireland-quinn-2010-9
Thu, 23 Sep 2010 09:35:00 -0400Gregory White
<p><img style="float:right;" src="http://static3.businessinsider.com/image/4ba0e4e47f8b9a4e68700500-275-206/anglo-irish-bank.jpg" border="0" alt="Anglo Irish Bank " width="275" height="206" /></p><p><a href="http://www.businessinsider.com/blackboard/goldman-sachs">Goldman Sachs</a> is working on behalf of the Irish government, advising its National Asset Management Agency on its dealings with bailed out <a href="http://www.businessinsider.com/blackboard/anglo-irish-bank">Anglo Irish Bank</a>, <a href="http://www.independent.ie/business/world/goldman-plays-dual-role-with-quinn-group-2349547.html">according to the Irish Independent</a>.</p>
<p>But there is one part of this deal in which Goldman Sachs may have a <em>slight</em> conflict of interest.</p>
<p>Anglo Irish is planning on buying the <a href="http://www.businessinsider.com/blackboard/quinn-group-insurance">Quinn Insurance Group</a>. Quinn owes Anglo Irish Bank &euro;2.7 billion, and Anglo Irish believes the acquisition of Quinn is the best way to recoup that cash.</p>
<p>But, at the same time as advising Anglo Irish on the deal, Goldman Sachs' bond traders are buying a "<a href="http://www.independent.ie/business/world/goldman-plays-dual-role-with-quinn-group-2349547.html">small portion</a>" of approximately &euro;50 million in Quinn Group debt for the firm's clients, <a href="http://www.independent.ie/business/world/goldman-plays-dual-role-with-quinn-group-2349547.html">according to the Irish Independent</a>.</p>
<p>Goldman has claimed the '<a href="http://www.independent.ie/business/world/goldman-plays-dual-role-with-quinn-group-2349547.html">Chinese walls</a>' it has in place prevent any sort of conflict of interest.</p>
<p>But because it is in the interest of Goldman Sachs' clients for Quinn Group to be sold to Anglo Irish, this seems a little bit like shenanigans to us.</p>
<h3><a href="http://www.independent.ie/business/world/goldman-plays-dual-role-with-quinn-group-2349547.html">Read the full story at the Irish Independent &gt;</a></h3><p><a href="http://www.businessinsider.com/goldman-sachs-ireland-quinn-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/orlando-green-credit-agricole-2010-9Ireland Needs To Come Clean Over The Costs Of The Anglo Irish Bank Bailouthttp://www.businessinsider.com/orlando-green-credit-agricole-2010-9
Mon, 20 Sep 2010 12:54:00 -0400Gregory White
<p>Orlando Green, interest rate strategist at Credit Agricole CIB spoke to CNBC this morning about the current state of Europe's debt crisis.<br /><br />1:15 Uncertainty is driving the market, and that is the core problem with Ireland. The ultimate cost of Anglo Irish remains unknown. That is spooking the market.<br />2:10 Up to &euro;10 billion or more is the threat against Ireland right now. Until that is public, there is no understanding in the markets.<br />2:40 Bank borrowing from the ECB has been heading up not just in Greece, but in Portugal too.<br />3:15 Michael Langford from Streamtrading.com says that an increase in government spending on programs that will lead to employment will be positive, but there are serious concerns over wastefulness.<br />4:00 Langford also pointed out that a downturn in Europe is a threat to China, but it isn't a problem at the moment.</p>
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</p><p><a href="http://www.businessinsider.com/orlando-green-credit-agricole-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/irish-cds-anglo-irish-bank-2010-9Irish CDS Ticks Wider As Concerns About Anglo Irish Bank Escalatehttp://www.businessinsider.com/irish-cds-anglo-irish-bank-2010-9
Mon, 20 Sep 2010 08:39:00 -0400Gregory White
<p>Concerns continue to rise over the future outlook for Anglo Irish Bank and that's having an impact on the pricing of Irish sovereign debt CDS as well.</p>
<p>While a plan is in place to split Anglo Irish Bank in two, <a href="http://www.businessinsider.com/irish-banking-bailout-2010-9">markets lack confidence</a> that the plan will be executed prior to something going awry at the bank.</p>
<p>While other Irish banks are seeing their CDS tighten, Anglo Irish Bank continues to drag sovereign CDS in Ireland wider.</p>
<p><a href="http://www.cmavision.com/">From CMA Datavision</a>:</p>
<p><img src="http://static5.businessinsider.com/image/4c97558f7f8b9af4773f0500/anglo-irish-cds-920.jpg" border="0" alt="Anglo Irish CDS 920" /></p>
<h2><a href="http://www.businessinsider.com/anglo-irish-bank-2010-9#it-all-started-with-a-massive-property-bubble-1">Here's how Ireland got into this bailout mess &gt;</a></h2><p><a href="http://www.businessinsider.com/irish-cds-anglo-irish-bank-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/irish-banking-bailout-2010-9The Irish Banking Bailout Is Getting More Expensive By The Minute And This Chart Shows Whyhttp://www.businessinsider.com/irish-banking-bailout-2010-9
Thu, 16 Sep 2010 15:24:00 -0400Gregory White
<p>The Irish banking sector bailout has come to the forefront of European worries due to the difficulties experienced with Anglo Irish Bank. The costs have risen dramatically on that specific bailout, and now stand at &euro;25 billion, though could go higher.</p>
<p>Barclays estimates the costs of the overall Irish bank bailout are somewhere between 24% and 31% of Irish GDP. But look at how large a portion of that is taken up by Anglo Irish Bank.</p>
<p>From Barclays:</p>
<p><img src="http://static1.businessinsider.com/image/4c9268817f8b9a2821fb0700/ireland-bank-bailout-chart-916.jpg" border="0" alt="Ireland Bank Bailout Chart 916" /></p>
<p>And, of course that percentage, and the size of the bailout, could yet expand.</p>
<p>But this banking sector bailout isn't just about a loss in immediate GDP, it is about a long term recalculation of just how large Irish GDP growth should be.</p>
<p>From Barclays (emphasis ours):</p>
<p style="padding-left: 30px;"><em>The ongoing macroeconomic downturn is not only the result of the adverse cyclical factors described above but it is also part of the structural changes required for the economy to adjust towards a more moderate medium-term growth path. Bank credit grew at a sustained annual average rate of 25% between 2002 and 2007. The rapid credit growth fed a housing price bubble (a cumulative 450% increase between 2000 and 2007), which in turn fed back into more credit growth. <strong>This led to a disproportionately large contribution by both the construction and financial sectors to the Irish economy and, consequently, to real GDP growth rates well above potential.</strong></em></p>
<p>So Ireland need not only get used to a banking sector indebted and unable to lend and a government having to cut costs, but an economy that is, in the future, never going to be as good as it was before.</p>
<p>GDP growth looking meek, compared to the good old days.</p>
<p><img src="http://static3.businessinsider.com/image/4c926a197f8b9a250b040000/ireland-gdp-916.jpg" border="0" alt="Ireland GDP 916" /></p>
<p>The concern is that Ireland, in order to control the expanding cost of the bailout, weak GDP growth, and negative impact on its banking sector, may need to seek IMF help, according to Barclays, simply because "the government has very few options left of its own."</p>
<p>Barclays don't think that decision is needed now, or is imminent, however.</p>
<h2><a href="http://www.businessinsider.com/anglo-irish-bank-2010-9#it-all-started-with-a-massive-property-bubble-1">Here's how Ireland got into this bailout mess &gt;</a></h2><p><a href="http://www.businessinsider.com/irish-banking-bailout-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/euro-surges-after-anglo-irish-bank-announcement-2010-9Euro Surges After Anglo Irish Bank Announcementhttp://www.businessinsider.com/euro-surges-after-anglo-irish-bank-announcement-2010-9
Wed, 08 Sep 2010 10:35:06 -0400Joe Weisenthal
<p>The <a href="http://www.businessinsider.com/breaking-anglo-irish-bank-to-be-split-in-two-2010-9">appearance</a> of a partial resolution to the <a href="http://www.businessinsider.com/anglo-irish-bank-2010-9">Anglo Irish Bank crisis</a> is getting investors psyched for Europe again.</p>
<p>Look at the euro go.</p>
<p>US futures are up nicely, too.</p>
<p><img src="http://static6.businessinsider.com/image/4c879ead7f8b9ae7738c0500/chart.png" border="0" alt="chart" /></p><p><a href="http://www.businessinsider.com/euro-surges-after-anglo-irish-bank-announcement-2010-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/anglo-irish-bank-cds-widen-2010-9Anglo Irish Bank!http://www.businessinsider.com/anglo-irish-bank-cds-widen-2010-9
Wed, 08 Sep 2010 08:09:56 -0400Joe Weisenthal
<p>The most important bank in the world at this moment, Anglo Irish Bank -- <a href="http://www.businessinsider.com/irish-begin-to-revolt-at-gigantic-bank-bailout-demand-ecb-swallow-all-losses-2010-9">which threatens to bankrupt the Irish state and destroy its relationship with the Eurozone</a> -- is seeing its CDS blow out once again, up another 11% just today.</p>
<p><img src="http://static4.businessinsider.com/image/4c877cc67f8b9a35391c0000/anglo-irish.png" border="0" alt="anglo irish" /></p><p><a href="http://www.businessinsider.com/anglo-irish-bank-cds-widen-2010-9#comments">Join the conversation about this story &#187;</a></p>